83(b) Election Examples for Founders (Cover Letters & Process)
last updated: Mar 27, 2026
Filing your equity paperwork wrong is the easiest way to sabotage your financial future. Here is the exact packet structure you need to get this mailed on time — without second-guessing what goes in the envelope.
TL;DR
Reviewing 83(b) election examples ensures you mail the exact right cover letters, copies, and return envelopes to the Internal Revenue Service (IRS).
- Rule: Send your packet via USPS Certified Mail with Return Receipt to prove delivery.
- Action: Integrate this process into your broader 83(b) election founder checklist so you do not miss the 30-day deadline.
Glossary
- Section 83(b) Election: A written letter to the IRS letting you pay taxes on your total shares upfront rather than as they vest. You can read the Carta breakdown on 83(b) elections for deeper context on how this impacts founder equity.
- Certified Mail Return Receipt: The USPS postal product that gives you a legally binding paper trail proving the IRS physically received your envelope.
The Asset
Here is the step-by-step process and structural template for a complete filing packet. For team coordination, review the startup script for 83(b) elections to ensure all founders comply.
[Date]
Department of the Treasury
Internal Revenue Service Center
[IRS Address for your specific state]
RE: Section 83(b) Election for [Your Full Name]
Social Security Number: [Your SSN]
Dear Sir/Madam:
Enclosed please find an original and one copy of the statement under Section 83(b) of the Internal Revenue Code of 1986, as amended, regarding my recent purchase of restricted stock of [Company Name], a [State of Incorporation] corporation.
Please file the original statement and return the file-stamped copy to me in the enclosed self-addressed stamped envelope.
Sincerely,
[Your Physical Signature]
[Your Typed Name]
Enclosures:
1. Original 83(b) Election Statement
2. Copy of 83(b) Election Statement
3. Self-Addressed Stamped Envelope
- Prepare the primary envelope: You need a master envelope addressed to the specific IRS Service Center for your state.
- Include the cover letter: Print and sign a letter clearly stating what is enclosed. See the template below.
- Attach the signed form: Include your completed and physically signed 83(b) document.
- Add the secondary copy: Include a photocopy of the signed form for the IRS to stamp and return.
- Enclose the return envelope: Put a self-addressed stamped envelope inside so the IRS can mail back your stamped copy.
- Mail to the company: Send one additional copy to your startup records department or your co-founder.
[Date]
Department of the Treasury
Internal Revenue Service Center
[IRS Address for your specific state]
RE: Section 83(b) Election for [Your Full Name]
Social Security Number: [Your SSN]
Dear Sir/Madam:
Enclosed please find an original and one copy of the statement under Section 83(b) of the Internal Revenue Code of 1986, as amended, regarding my recent purchase of restricted stock of [Company Name], a [State of Incorporation] corporation.
Please file the original statement and return the file-stamped copy to me in the enclosed self-addressed stamped envelope.
Sincerely,
[Your Physical Signature]
[Your Typed Name]
Enclosures:
1. Original 83(b) Election Statement
2. Copy of 83(b) Election Statement
3. Self-Addressed Stamped Envelope
Benchmarks
Founders shift their future tax burden from ordinary income (up to 37%) to long-term capital gains (typically 20%) by filing early.
Sample math: If your company issues you 1,000,000 shares at a par value of $0.00001, your gross tax liability on day one is only $10.00. Without this filing, those same shares vesting at a $5,000,000 to $10,000,000 valuation will trigger ordinary income tax bills on money you have not realized yet.
Sample math: If your company issues you 1,000,000 shares at a par value of $0.00001, your gross tax liability on day one is only $10.00. Without this filing, those same shares vesting at a $5,000,000 to $10,000,000 valuation will trigger ordinary income tax bills on money you have not realized yet.
83(b) filed vs unfiled
- 83(b) Filed: You lock in your tax liability at the current nominal value. You pay a few dollars today, and future gains are treated under favorable capital gains rates.
- 83(b) Unfiled: You pay ordinary income tax on the increased value of the shares every single time a new batch vests. This creates phantom tax bills where you owe the IRS cash you have not actually made yet.
Risks
- Missing the window: The hard 30-day filing window cannot be fixed by any lawyer or accountant if you miss it. It is an absolute deadline.
- Lacking a paper trail: Mailing without a tracking number leaves you defenseless. If the IRS loses your paperwork and you cannot prove delivery, you are treated as if you never filed.
Will filing your 83(b) paperwork get you to $10K MRR?
Getting your 83(b) paperwork right protects the equity you are working so hard to build. But remember, a perfectly filed IRS form will not close deals or hit that $10K MRR milestone on its own. Get this administrative task out of the way, file it properly, and get back to building a product people actually want to buy. This is why I built Traction OS. Fix your foundation before you launch.
FAQ
- You:Does the IRS notify me when my election is approved?Guide:The IRS does not send an approval notice. They will only return the date-stamped copy using the envelope you provide, which typically takes 30 to 45 days. You can refer to the IRS guidelines on equity compensation for more details on restricted stock rules.
- You:What if I forget to send a copy to my startup?Guide:The company copy is required for payroll and tax withholding records. If you miss this, hand it to your co-founder immediately.
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